2. A PEST analysis is a four-point review of
potential problems for a business, covering
the Political, Economic, Social and
Technological areas. Understanding what
problems might arise, now or in the future,
can help a company circumvent them and
avoid a potentially crippling issue
3. Political Factors
Economic Factors
Social Factors
Technological Factors
Environmental Factors
4. Political factors are activities related to
governmental policies that can have an
effect on something. Environmental laws are
a political factor, minimum-wage laws are
a political factor, local zoning laws
are political factors.
5. Economic factors are very significant in
terms of business. Whether it is an online
business or physical, economic factors can
have a significant effect on it. It is because
economic factors are directly related to
business and their effect is also direct on
business revenue and profits. During the
period of recession, spending had decreased.
People had adopted cost cutting measures as
the level of economic activity and
employment had gone down.
6. Social cultural factors too have a deep
impact in ecommerce industry. Most
importantly e-retail brands find it the easiest
to flourish locally. Growth in foreign markets
can be full of challenges. Changing trends
can also have an impact on businesses. The
growing use of mobile technology has
affected ecommerce.
7. Technological factors are very important in
the context of the ecommerce industry. It is
because the industry relies heavily on
technology. Everything is based on
technology in e-retail from sales to customer
service. All the ecommerce brands are in a
race to be technologically ahead of their
competitors. From Amazon to E-bay and
Flipkart, every brand is investing a lot in
technology to find faster growth.
8. Environmental factors too have a special
importance in the context of Ecommerce
industry. While the direct environmental
impact of this industry is very low and nearly
zero, it still focuses heavily on sustainability.
Brands like Amazon have invested heavily in
technology.
